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Lou Dobbs Tonight

News/Business. Lou Dobbs. The journalist offers his take on issues and interviews newsmakers. (CC)

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Israel 10, U.s. 7, Us 6, California 5, John Boehner 5, Mitch Mcconnell 3, John 3, Boehner 3, Washington 3, America 3, Johnson 2, Australia 2, Intel 1, Heather Mcdonald 1, Edson Life 1, Taliban 1, Chevron 1, United States 1, The Nation 1, Apple 1,
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  FOX Business    Lou Dobbs Tonight    News/Business. Lou Dobbs. The journalist offers  
   his take on issues and interviews newsmakers. (CC)  

    January 1, 2013
    10:00 - 11:00pm EST  

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away in a leaf. oh, boy, the cousin of the best selling hybrid car, the toyota prius plug-in. only 6,000 prius sold in the first three quarters, leaving us with the number one electric car in the u.s., yeah, you got it, the always controversial chevy volt which does not make this noise. get this, the best selling car has just 13,000 sales. that's the best selling one. that's the one that does really, really good. the car is constantly a disappoint dollars. that is it for next "the willis report thank you for joining us and i wish you and your families all have a very, very merry christmas. have a great night.
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♪ diane: hi, everyone. i'm diane macedo joins from fox business headquarters here in new york, and we have been keeping you updated all night as the way for the house of representative to out and vote on a fiscal have to tap the stock of steel. to set terms and conditions from the debate on the measure. the house began debating the bill which means we should see an upper down vote tonight. one of the big questions is how markets will react all of this. overseas we are seeing trading. australia and hong kong are open for business. the green arrows there at the moment at that trading incendy. japan is closed for the holidays, but we are watching oil. that is also up at the moment as well. u.s. futures will begin trading at 6:00 a.m. eastern. keep an eye out for those. they start, but in the meantime let's check in with k-9 live on capitol hill and has been keeping us updated on night here
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and all they for that matter what is the latest? rich: well, we should be starting to get some votes in the house of representatives for final passage of this proposal. it has been a very long road. the house of representatives particularly throughout the day, the possibility that the house may amend or change this bill. they decided not to go that route, and now we're just moving toward a vote on final passage right here. this will likely be done with a significant number of democrats supporting it. republicans still have a pretty significant problem. they wanted more spending cuts involved. they did not get that. they think there won't materialize as part of the steel, so you do have a handful of very influential republicans including the house majority leader who says he is not going to vote for it. a split between the leaders as the house speaker and majority leader possibly testing two different votes when all is said and done.
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but when you look at what this is for republicans, it becomes a vote to essentially cut taxes. the clinton era tax rates have been basically bought back. the expiration of the books to -- bush tax cuts as of midnight this morning. what you have is a key vote in that house that will decide the fate of this deal that was struck between the minority leader of the senate and the vice-president just about an hour from now. diane: if this passes you still have to deal with spending cuts in the debt ceiling, of course. will that turn into another showdown? rich: absolutely. because there are really no significant spending cuts in here republicans are still sticking to their opening point which is any increase in the debt ceiling must be accompanied by spending cuts of equal values. that is something that republicans are going to have to the move the ball on.
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he also after member and a couple of months we're going to deal with government spending in general, what is known as a continuing resolution which funds the federal government, the discretionary part of the federal government. that expires in a couple of months and is something that we're going to have to deal with as well. lots of spending issues appeared. congress really at the end of this week if this goes through. diane: we are watching nancy pelosi speaking their excess your right. we are also -- one of the things we heard from the gop a year earlier, i said to your right. i should say to allow for people watching, but we heard from a gop aide the republicans at this point and the deal is not perfect. making the minutes and trying to avoid being blamed for going over the fiscal cliff. we've heard this route, the american public largely would hold republicans responsible if we do go over the fiscal cliff or if a deal is reached by that time markets opened here. why that blamed?
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a question of who had a better pr team working on this? the president verses the speaker is there more to that? >> in this particular case it would be because you had senate democrats and republicans overwhelmingly vote for this last evening. eighty-nine votes in the u.s. senate to get this through. it's remarkable, especially for this congress, for this type of legislation. you have house democratic leaders signing off on this proposal. look, this is not a perfect deal. a lot in your we don't like. with the tax increases would hit folks of -- making less than foreign and 50,000 year. they want to protect $250,000 less. some other measures the one it that they didn't get. you have basically of all the groups it are in congress and the house, the democrats or republicans, the only outstanding group of lawmakers here with the house republicans out of the four that did not support this, and so it would
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very much be blamed for this particular deal not getting through congress if they didn't vote for tonight. diane: what happens with the spending cuts? we have seen the republicans but quite a bit from the tax increases, no licking a 40,450,000 for individuals and couples. we have not seen as much movement on the spending cuts. is an expectation that we will? >> one of the things that we have seen about this deal that you have to look at is something that is not in it, the increase in the debt ceiling. that was one of the final offers that the white house had given back when the white house was negotiating directly with house speaker john boehner. they wanted for years of increases in debt ceiling a party, something republicans were not willing to budge on. without an increase in the debt ceiling, it allows republicans to engage the white house and democrats in yet another fight to cut spending in exchange for raising the debt ceiling, so that's the next fight that the next congress will pick up once it gavels in at noon on the
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third. diane: we are watching charlie rangel speak as the house members go around and debate the fiscal cliff steal from the senate. i also wanted to talk about , thursday at noon, a new congress in session. the steel expires. what happens at that point? if we don't get a vote now it's kind of a done deal. they start from square one? rich: basically. in fact, if this does not pass this evening, if we don't have enough votes to get this through in your basically at square one. you have to figure out exactly how you're going to deal with tax rates that have gone back to clinton narrates a broadbased tax increases on nearly every one u.s. bank of . that's what happened tonight. as we were earlier in the evening, not sure they would consider this by noon on the third because that is when the current congress, the 112, expires. the legislation that passes, in both houses of congress don't
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pass a piece of legislation, all that legislation expires. yes and you have to start the clock again. if this book takes place and we're headed for in about an hour, if it does take place in the vote fails and this bill, this compromise does not pass, the house of representatives, then we're back to square one. the house speaker would have to get involved, something the republicans in the house of been stressing all they, this is a deal between the minority leader mitch mcconnell in the senate and the vice-president of the united states and the house speaker john boehner was not involved. however, there is death valley contact between the two offices as they continue to negotiate, the minority leader and the and vice-president. when you have such overwhelming support it creates more pressure from members of the house to vote for this. you are going to see very likely high-profile republican members in the u.s. house vote against this because of the lack of spending cuts caught. diane: we did hear from several house republicans saying it
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would come out against this, but we did not hear from boehner. he did not give adjust of whether he would pass and not. that being said, he and thursday he is back up for reelection. expected to affect that have? rich: it's interesting. we will see how many republicans go along. he controls the house floor. this is him putting this bill, this compromise proposal on the floor of the u.s. house. now, speaker boehner does not get the majority of the house conference, and other words, more republicans voted against this level for a commit then you have this situation where the speaker is almost on the same sun that was voting. sometimes speakers don't vote, but allowing support of this, if you wanted to he could just not allowed to be brought up. he would basically be the one that allowed this with democrats to pass the u.s. house if it passes. so such a high-profile vote,
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there is speculation that this means his speakership. starting to your from republicans earlier today that they respected the speaker's efforts on all of this and even if he does bring this up for a vote, which he has done and even if it does pass the house with the bulk of democrats and they lose most of the republicans on this, then still there would be support. there is also a conference meeting yesterday, a standing ovation for the house speaker. i think a lot of folks in the press like to report out there could be trouble, how the speakership could be problematic depending on how this vote goes, you never know. there does seem to be significant support and also questions of who would take over. with house majority leader want to be speaker? especially when he would step immediately into a debt ceiling fight in the government's spending fight if he assumes that rule? diane: and looking at the situation, the ante has been dealt, a lot of tea party politicians that came into
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congress, they're obviously very far on the conservative spectrum when it comes to spending issues and you have one of the most liberal precedents in our history, if not the most liberal president. this he get any credit for trying? rich: he does. in a very tough spot because the dynamic is, if you look at the presidential election, adelle remember the specific numbers, but there are only a handful of congressional districts, house members who were from one party, let's a republican and in the folks in that district, the voters in the district voted for president obama or the other way around. a democrat who voted for that. you're not seeing much crossover that means they have a lot of house members, especially a lot of republicans who really aren't concerned about challenge or challenges from democrats in the 2014 election. there are more concerned about challenges from the right.
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a primary campaign. starting to see a lot of that. republicans starting to move a little bit more to the right and they have in the past, number of issues because they're worried looking taken out and the primary. a lot of those folks cannot necessarily worried about appearing bipartisan because they came here and were put in by their voters to cut spending and not to raise taxes. for many they see this as a lack of an opportunity to cut spending and even though tax rates have all risen as of yesterday, this would be considered to some a tax increase. the son number of the conservative members have problems with that. not really worried about losing to a democrat or someone in the middle. the word of the primary command as well lot of times they are representing their districts , while voters sent them there. that is representative democracy diane: you're watching them go through these debates. some of what the parameters are, what this wiil vote did for the
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debate and what you could expect rich: it just moves along. they just had it passed overwhelmingly, if that did not pass it brings us back to zero, and they have to go back to the rules committee and it's kind of a procedural mess and could really hill this proposal or extend our evening even longer. we're back on track, have been on track for a vote within the next hour. up or down depending on how many folks welcome the majority wins. the last, about four under the 15 members. transfigure what you need. diane: we have been on for too many hours. thank you. we appreciated as always. 208. that's the latest on the fiscal cliff negotiations. we will continue to keep you updated as to give more news.
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lou: republicans facing increasing calls for immigration reform following the president's reelection in part of that victory on the part of the president and in the minds of many due entirely toan the suppt of the hispanic voter. exit polls show since a 5% of voters believe most illegalhmost immigrants working in this country should be offered a chance to apply for legal status. 28% say they should be deported. joining us, nhattan stitute fellow, heather mcdonald. great to have you with us. >> thank you, lou. lou: your judgment as a matter of poli. what do you think is the appropriate way for publicon policy on the issue of illegal immigration?>>
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>> i would like to move ourm immigration system toward the skill face qualifications that i you come and not because you have a family member alreadybu here but because you have skills of the american economy needs and the language. with regard to legal immigration, think t rule ofn law is remaining the best way oe making sure that people don't come into the country illegally. the risk of an amnesty that is basically all that we are talking about unfortunately is amnesty. every amnesty in the past weather in europe or in then united states has had the effect of attracting more people in the country illegally in the hopes of a future amnesty. lou: years ago i started talking about a rational, humane immigration policy that would take intocy account all of the concerns about displacement of those who re in this country
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illelly, a due process make a determination of how work permitand legal status occurred. that is not enough.th the activist groups in this country t insist upon one thing, it is remarkable demand in my eyes, they insist upon amnesty and this president is insisting upon amnesty. what is your reaction? >> what i worry about most is not amnesty, but incredibly successful campaign toma stigmatize any immigration enforcementti whatsoever.ha when you have opposition across the country to a program called secure communities which says if you have committed a crime and you enter a jail, the jlsh authorities should notify the federal immigrationh authorities to your presence, that is now viewed as unfair to legal immigrants, so we can't even penalize criminals. that means even if we say we
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will give amnesty to everybody here and from this day forward we will start enforcing laws, wr won't.ng l lou: politically for republicans right now and the tempo and the tone of the conversation issurp rising, republicans are looking at theo numbers and they're saying despite theact they didn't even turn out the members they have, this was the lowest turnout in almost 20 years. it is striking, now they say they have got to create diversity.u we will take up the issue of diversity later in the broadcast, but what is your reaction?a ould they do that? is there a change i in the attitude of the republican party? >> first of all diversity" is our ridiculous. the best person should move
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forward regardless.. if republins believe in amnesty, they should enact amnesty. the hope that this will deliver significant numbers of current democrat hispanics the republican party i think isis naive because the main reason hispanic support the democratic party is economic polies, not immigration. you have 62% of likely hispanic voters in september poll by fox saying they supportedbamacare. this despite the catholic church opposition to the contraception mandate. so much for the social values. they support proposition 30 in california to raise taxes one upper income californians and to raise theales tax because hispanics remain at the lower level of the economic ladder and they use government welfare programs at a very high rate.t . lou: i welcome this discussion.
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now being by the republicans one reforming our immigration laws. but hope there is not a rush to judgment somehow loses acro a vast sea of facts and realities that have been avoided by both political parties. the american people really need to understand what is happening the hispanic community needs to understand what is happening.de the idea that is countryhere should be selecting those of prince and the united states based on their skills or bgo talents, that has to be a tough sell when theug land bridge istt downe south. >> that is white amnesty is very risky becaus it means that stopping the flow of illegal aliens from that land bridge will be even more difficult. lou: if there is an amnesty, to be the t third in the last 26
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years and it will be something to watch.wa >> and we will have it in full, i guaranteeca you. lou: thank you very much. how much ould we pay in taxeserm to the government? a prominent economist sa we should go back to the times of leave it to beaver and pay up. how do 91% feel to you? we take it up in the "chalk
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♪ lou: new k lou: "new york times" economist columnist is arguing for a return to the 1950s when incomes in the top tax bracket had to pay a marginalh tax rate, are you ready, 91%. herhere's part of what he wroten
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his column in "the times." america in the 1950s made the rich pay their fair share. 91%. it gave workers the right to bargain for decent wages andy benefits. contrary to right wingogan propaganda, anything that disagrees with him, then and now it is pertinent we can do that again.p so parents as nobel winning economist just once to raise taxes 91% and everything will bd fine. these are really something else. in a class by himself, however. back then we had a responsibler government and responsible economist and even responsible a columnists. in 1955 the middle of the decade, federal spending wasov just over 17% of gdp.
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17%. now just about 23% of gdp. the good old days. federal deficits were .8%. that's .8% of gdp. now our trillion dollars federal deficit amounts to 7.3% of gdp. back then trade was aa contributor to economic growth for the, economy. reunion $500 million at $4.2 billion adjustedio for inflation, and we're running a trade deficit,it trade deficit $536 billion. $536 million. back then social security made up 6.5%. 6.5%.
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of the federal budget. 6.5%. the decayed and medicare didn't exist back the let's compare that to what we are doing now. a 20% of the budget on social security, and thene throw a 21% more of the federal budget for medicare, medicaid, and anotr 13% for other social programs, food stamps. so that comes up to a whopping 54% of the budget. 54%. forgot to mention this. it is kind of important, isn't it? back than median family income was about $38,000. $38,000.
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today it is $62,000. we will pretend that looks like a two and that looks like a six. we haven't done too well, more than half a century in raising a the median income ine this country and that is something he is right about, we do have to fix that. imagine this, it's got a nobel prize. the unions made up 24% read today that number a rather convenient because a reduction by half of 12% right now.
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it tells which were the country is moving in this nostalgia for a 91% tax rate. i want you to know if ever there were evidence the nobel prize doesn't equal genius, i think we can start with the number 91. president obama meeting with the most respected ceos. ceos. and they convince them to take the path of prosperity? vo: this week at officemax everything you can fit in this bag is 20% off.. saving 20% on everything your company needs. it's a big deal. check your december 30th sunday paper or print the coupon at officemax.com. we don't let frequent heartburn come between us and what we love. sof you're one of them people who gets heartburn and then treats day afr day... block the acid with prilosec otc
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lou: president obama meeting with heads of the labor unions today saying the president ismmt committed to higher taxes on top earners. tomorrow a group of ceos from ge, wal-mart can afford, chevron will meet with the president and
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some of them, members of the campaign to fi fixed the debt limit, one of the most provocative and economic thinkers, the author of the israel test and new addition today. thank you for being here. >> great to be here. cs. i think rationally so. we are faced with economic calamity if our politics don't work here. what would you put the odds at thatusy rationality and effectiveness reemerge from washington, d.c., on the fiscal clif >> zero. lou: i thoht that. >> if we can keep the current tax rates, we would continue to increase government revenue. increasing 26% under the bush tax rates over the last two
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years. over the last two years, government revenues have risen 26%, almost a quarter using the buss tax rates. low tax rates bring more revenues, not less revenues. lou: do you interpret all of the drama to be a lack of faith? in front of the growth model that has been demonstrated, you point out, over the past two years. they are really saying the economy cannot grow fast enough to support the government. we will not see revenue increase unless we raise taxes. >> that is correct. the pre-verse thing is you don't get growth if you raise tax rates. in california and several other states that topate is
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approaching 50% effectively with a 50% top rate, a business have as much incentive to fire somebody to lower-cost as to hire somebody to increase revenues. lou: it is a high risk experiment, but nonetheless experiment bringing tax levevels above 50%, the nation see califa behave as the cana in the coal mine, if you will, when it comes to economic growth and the ability to support an ever-growing government? >> ofourse. people are just fleeing california. california is what happens to countries that raise their tax rates. entrepreneurs flea and welfare recipients flee in and you have an unsustainable state of
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affairs, and that is california unsustainable. and silicon valley is america's greatest asset, the source of all of our technology and ultimately our military power and potential for growth and we are ttling into over the pale, everybody in silicon view is angling for green subsidies and it is a tragedy. lou: that tragedy compounded by the fact the money that has been spent by this administration if you will on venture money like solyndra has been disastrous. >> they are twisting our venture capitalist, turning people like john doerr into a blithering idiot. john seeking government subsidies. he now wants us to support him rather than him to support the country with wonderful new
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companies like intel. lou: john is being adaptive to new realities. the primary source of the capital, he is turning to it, i suppose. i want to turn to this book, "the israel test." you take up the issue of the world civilization, importance of israel within it. as a capitalist as well as jewish state. you really believe that israel is that strong, that important in the world's future? >> i certainly do. the american economy is heavily dependent on israel today, partly because of the debauchery of silicon valley, but now israel is a crucial source of new technology for apple. all apples, flash tribes, just bought a new israeli company to empower its new technologies. microsoft, cisco, johnson and
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johnson. the dependent on technologies that come from israel. they're deeply dependent. obama seems to think that the the tips is more important in israel or turkey is more important. israel is the most important technology force in the world next to the united states, and if we keep on our current path israel will be number one. lou: always good to talk with ink that will help? the m" i on the dot.com. >> in october 2009, taliban fighters attacked an outpost with just 53 troops.. eight of our troops lost theirs lives that day. the author wanted answers on why our troops were left unprepared
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and unprotected. he joins me next to talk about for singing definitely dry mouth has been a problem for me. but i'm also on a lot of medications that dry my mouth out. i just drank tons ofater all the time. it was never enough. i wasn't sure i was going to be able to continue singing. i saw my dentist and he suggested biotene. it feels refreshing. my mou felt more lubricated. i use the biotene rinse twice a day and then i use the spray throuout the day. it actually saved my career in a way. because biotene really did make a difference.
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a
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it's been a really eventful day. >> it's very eventful week especially the last few days and what this all started with, the negotiations between president obama and house speaker john boehner collapsed and they decided to give it a shot on the senate. they try to get that going and majority leader harry reid and mitch mcconnell. those talks fell apart fell apart this weekend so cinnamon party leader mitch mcconnell picks up the phone and calls vice president job ion. it was those two guys and they did so here, reaching a deal in the early our mornings. the early and hours of the morning and finally once that
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happened it paves paved the way for a senate vote which happened last evening and overwhelmingly got support from democrats and republicans. the house guarded to look at it this morning they were not getting a strong sense of support from republicans. if you make any changes to a bill like this it torpedoes the whole deal. the the senate was saying they wouldn't consider anything else in the same bill has to start the senate and the house so any changes that the house would make to it would blow this entire deal of. house republican leaders decided they didn't have enough votes to change it. they decided to bring us both to the floor and this is the result of what you are seeing now. 118 to 60 is what you have got. still though you have a number of republicans who are really concerned with the makeup of this proposal. they don't like it because they don't feel they are anywhere near enough spending cuts and they really aren't that many
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relatively speaking spending cuts. other republicans have embraced this head textwriter in the ways & means committee not everything you wanted but you are making permanent many, 99% or so of the bush era income tax rates. that is a permanent policy here, something that a number of republicans are taking ways a victory. democrats are necessarily thrilled about that but they also do get a one year extension of unemployment insurance benefits and the alternative minimum tax, strange tax system that limits the deductions you have too taken a tax return. this is something that normally doesn't hit the middle class that is supposed to hit the middle class every year. tens of millions of americans, what congress does is exempts those americans at the end of every year. this makes that amt taxes is nonpermanent so permanently folks in the middle class, millions of them won't have to pay the alternative minimum tax
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and will have to hold their breath at the end of every year. so there is a lot in here that both parties really don't like but there is enough to get a decent mount of support as you see the vote total start to creep their way up 120 now -- 122 now. >> rich, it does seem they are learning somewhat with making these tax policies and the alternative minimum taxes when do you mentioned permit so we don't have to continue to go through these votes over and over again. that being said we are not dealing with spending cuts. that has been postponed again for another two months. we still have to deal with the debt ceiling so there is still a lot of -- and i wonder how complicated it is politically at this point for peart -- particularly for republicans. they don't like this bill because it includes more tax revenue than they wanted but at the same time neither party wants to be blamed and tagged as the party that allowed us to go over the fiscal cliff. how do you way those two things against each other when you issue a vote like this?
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see what you have got now is the parameters of the next five and that is the debt ceiling fight. you have republicans saying and have been saying for the last couple of years that any increase in the debt ceiling must be able to the number of cuts to federal spending. the white house position is congress's duty is to pass the debt ceiling and pass it clean debt ceiling index because basically what the debt ceiling is authorizing the spending for the arra wing that corresponds to the spending that congress approves. republicans want to use that as an opportunity to say look this is a reminder of how much money we are spending and we need to get that spending under control so already you have this debate again, republicans with an exact number of corresponding cuts in the debt ceiling in the white house telling congress to just raise the debt ceiling. that will be the next the next vitamin e look at what treasury has put out, technically the
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federal government has hit its debt ceiling. what the treasury can do is, treasury does a lot with the reinvesting of certain payments in certain retirement funds. i can hold off many of those reinvestment and use that money for the federal government to spend. $200 billion of debt the treasury can exceed the debt ceiling. normally that takes a couple of months, $200 billion, two months of federal deficit spending in this case because there's so much uncertainty with this tax code and tax bill or the treasury is not 100% certain how long it will take so they have been identified and actual day in which the federal government will hit the debt ceiling. the best estimate they can give is about two months but this is the next debate that washington is going to have. we have the parameters and we already have republicans who were upset there are no spending cuts relatively speaking no spending cuts in the bill who are ready to get rolling on spending cuts or entitlement reform in the debt ceiling
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debate. diane: a rich we found out speaker of boehner did vote yes in favor of passing this bill. we have been talking about the politics involved than i wonder figmick cities here to vote yes on this, being that the bush tax cuts technically expire today so this is no longer a tax increase but typically a tax decrease. does that help? rich it really doos and when you look at the policy here, yesterday it would have been a tax increase but the sales job for republicans now is this is a tax cut of nearly $4 trillion over the next decade because at the stroke of midnight the federal government, the tax brackets referred to where they were during the clinton years. that's a broad-based increase with every american paying and increase -- tax the republicans feel they have extended or the 99% of the policy that democrats
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have derided and the reason we are so deep in debt and deficit is because of the bush tax cuts. they just voted to extend more than 99% of the bush tax cuts and to make them permanent. that is seen as a victory for number of republicans. we were talking to a number of force conservator of governments yesterday who are saying we want to extend all the racing continue to extend their rates. the problem is there is no current rate to extend. those rates expired at midnight so this is technically speaking a tax cut making republicans comfortable that they are doing this. that has been the selling point for republican leaders trying to get this bill across. diane interesting to see other technicality changes everything. don't stray too far. i want to look at the market but we are going to check back with you in a few moments. that was rich edson life. he's been focused on this all day and all might let's look at the markets and we see
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across-the-board in hong kong and in australia come investors seem to be more and more optimistic as the get closer to reaching a deal here. or at least getting a vote on a deal i should say. i want to bring in jared levy, the senior equities data just for zach investment research. jerrett i want to talk a little bit about how this will affect markets. a lot of the focus seems to be on the politics involved that one of the things we are looking at here is at least with the fiscal cliff with all of the bad things and there are plenty can say about it, the deficit, this proposal actually raises the deficit. is their expectation that markets may react negatively at least in long-term? >> i think markets are extremely efficient, and the key there the operative word is no. we know right now that we are not going over the fiscal cliff and at least we are getting tax
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relief for the middle class. we will not get a huge tax hike for the middle class and the upper echelon -- but for now the average consumer spending model is not going to be affected too much. what ends up happening is we are now dealing with the question of okay, we have extended, we have added maybe two months where we can balance out and figure out what we will cut in spending. now the stock market is up against is question of what's going to happen next? that will create what we call headline risk. now it turns to spending cuts in getting the debt under control. year or so ago we were having this same conversation when we were having to lift the debt ceiling before and at the same thing all over again. i think initially we'll probably get a -- in the market but it looks that's that is what is
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happening. initially we will get the pop and once folks start to think about the ramifications i think the market will lower. diane we have been here before and ironically enough it was the last time we had to deal with the debt ceiling which is right around the corner. with the spending cuts postponed to be dealt with around the same time. what are the expectations on how that will affect the market? just your knowledge of looking ahead in realizing that we are not done yet? >> yeah and here's the simple answer. take a look at what the market did in the month leading up to the last debt ceiling negotiation. the market was getting hammered because there was all this uncertainty and don't forget when we start fiddling around with america's budget and deficit we are talking the risk of default than you will hear that were thrown up around quite a bit remark isn't like that. the other thing is we have to remember the earnings season kicks off next week. the holiday season is not
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expected to be settled -- stellar. and less there is some magical force that drives earnings way higher this month and by the way i run an earnings service and i don't see that happening, think they expect haitian once we get over the initial small portion has been passed people are looking for a big move forward. there's a lot of optimism out there in the markets recently. diane jerrett we hope you stick around and we will go back to rich because it looks like they clock is ticking. thanks so much. let's go through the numbers. >> basically time remaining zero. they can hold the vote open as long as they want. it has taken 15 minutes and it will take longer. look right now the numbers you are getting. first off you can change your vote. these boats aren't final and
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they are not final until the chair dabbles in and the boat is actually over which it's not. right now in the republican column you have 133 republicans voting no, more than half the republican congress at this point in the voting first off it appears there is enough votes thanks to democrats to get this bill through. if nobody changes this vote, the 223 beau sia now see on your screen is enough to pass this through congress if nobody changes their votes. also of nobody changes their votes republicans significantly voted against this proposal. already 142 more than half of their conference which is 241, 76 republicans voting yes so it's not a total embarrassment for house speaker john boehner. he gets a significant piece of this conference to vote for so far so 21 members have cast their vote and the possibility people changing their votes that this is democrats bringing this across the line, 155 fm to 13
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voting against it. this is something that democrats like politically because they like to be seen in voting for this as the responsible party in washington. you do have a significant number of republicans voting for it at this point in house speaker john boehner also voted for it but he also a latitude bring it into the floor. it is inaccurate to say that congress has passed at this point in the voting they have enough votes but it is not official until they gaveled in. it's usually unprecedented to see that many lawmakers votes changing but it's not official until they gaveled this thing in and that we expect to calm fairly soon with only 20 years eight or so lawmakers get to vote. diane: are we just waiting for the final votes to come in that interim? is there anything else that determines when we get gaveled out of me have a done deal? >> exactly and what you will